Uber Eats partners with delivery eTailer FastAF irrespective of warning signs. In the recent press release, Uber Eats confirms to launch 25-minute delivery. It will make use of the FastAF technology to promise a fast delivery. It will cater to the services in New York City, Los Angeles, and San Francisco.
FastAF calls this partnership an amazing opportunity for both companies. It aims to bring more customers. Also, the consumer’s ease of access while ordering food. They can select the product and will reach them in just 25 minutes.
Lee Hnetinka, CEO of FastAF, states, “More than 50% of our products are exclusive to FastAF, and partnering with Uber Eats gives their customers an unmatched assortment while expanding the reach of our selection.”
Ultrafast grocers are struggling in the United States market. According to a report, these service providers can lose $20 on average per order. One of the grocery delivery startups, Jokr, is looking for a buyer. It decided to sell its New York City business.
Uber also announced the addition of hundreds of grocery stores. It was especially for the location of California. The partnership with the FastAF comes as no shock. This aims to unleash the driving up of purchasing frequency. It will function for grocery items and restaurant meals.
Uber CEO Dara Khosrowshahi calls this a huge opportunity. She is calling it a multi-billion/trillion business. The power of the Uber platform can make it possible. The penetration in the online grocery market is still low.
As per a study, out of 2000 U.S. consumers, only 18% purchase groceries online. 20 % of the consumers agreed that home-delivery of groceries might improve loyalty. The low demand is a warning for the business to even take a hit. And, the cost of fulfilling order delivery is high. The market is very uncertain to even survive. Therefore, we can say that Uber Eats took a lot of risks.